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Environmental sustainability practices and exports: The interplay of strategy and institutions in Latin America
Affiliation:1. City University of New York, Colin Powell School for Civic and Global Leadership, 160 Convent Ave, NAC 5/141, New York, NY 10031, United States;2. City University of New York, Colin Powell School for Civic and Global Leadership, 160 Convent Ave, NAC 5/106, New York, NY 10031, United States;1. Beijing Normal University, Beijing, China;2. Shanghai University of International Business and Economics, Shanghai, China;3. University of San Francisco, San Francisco, CA, United States;1. Korea University Business School, Korea University, Seoul, Republic of Korea;2. Ivey Business School, Western University, London, Ontario, Canada;1. Department of Strategy & International Business, Kent Business School, University of Kent, UK;2. Newcastle University London, UK;3. Department of Strategy & International Business, Birmingham Business School, The University of Birmingham, UK;1. School of Management, University of Bradford, Bradford, United Kingdom;2. KFUPM Business School, King Fahd University of Petroleum and Minerals, Saudi Arabia;3. Leicester Business School, De Montfort University, Leicester, United Kingdom;4. Kent Business School, University of Kent, United Kingdom;5. Leeds University Business School, University of Leeds, Leeds, United Kingdom;6. Beacom School of Business, University of South Dakota, United States;1. Queensland University of Technology, Business School, Australian Centre for Entrepreneurship, Australia;2. University of Queensland, Business School, Australia;3. College of Business and Law, RMIT University, Australia;1. Management and Quantitative Methods Department, College of Business, Illinois State University, Normal, IL 61790-5580, United States;2. Department of Management, College of Business, The University of Akron, Akron, OH, United States
Abstract:We integrate institutional economics with stakeholder theory to examine the antecedents and outcomes of Environmental Sustainability Practices (ESP) for small and medium enterprises in Latin America. We find that these firms primarily engage in ESP to succeed in export markets. We also find that this is especially true when firms demonstrate organizational agency by adopting complementary strategies such as obtaining international quality certifications to develop credibility among stakeholders. Lastly, their cause receives a further boost when they are based in institutional environments that are known for strong democratic voice and accountability mechanisms. In elucidating the interplay of strategy and institutions, we suggest the need to better integrate organizational agency into institutional theory and institutional environment into stakeholder theory.
Keywords:Environmental Sustainability Practices (ESP)  Sustainability  Emerging markets  Small and Medium Enterprises (SMEs)  Institutional environment  Organizational agency
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